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Investing in Your Staff: The Importance of Employee Benefits

importance of employee benefits
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Nobody wants to feel like they are not engaged with their job, and no business owner wants disengaged employees. Yet, according to a poll, only 32% of US employees feel engaged.

If you own a business, this statistic should worry you. Not least because disengaged employees are less productive, more likely to take time off sick, and more likely to quit.

So what can you do about it?

Well, here are where employee benefits come in. Offering benefits will increase employee engagement and benefit all aspects of your business. 

Need more convincing? Read on to find out more about the importance of employee benefits.

What Are Employee Benefits?

So what are employee benefits?

Employee benefits are also known as perks or fringe benefits. Businesses provide them to their employees in addition to their wages. 

Examples of Employee Benefits

Not all employee benefits are financial. Although bonuses and performance related incentives are often used by businesses. Benefits can be a wide range of provisions that are all designed to help the health and welfare of employees.

A common form of employee benefit is for businesses to offer health care insurance plans. This is a great way for companies to provide a tangible benefit for their staff while helping to keep their workforce healthy.

Other employee benefits used by businesses include:

  • Dental plans
  • In-house massages
  • Family away-day trips
  • Discount at local stores

The purpose of these benefits is to give something useful to employees, on top of their salaries. This helps them to feel valued and, in the example of providing health insurance, can alleviate some worries from their lives. 

Increase Employee Engagement

One of the main advantages of employee benefits is that they increase employee engagement. 

Employee engagement is when workers feel a connection to their employer and care about their work. It indicates a mutual sense of loyalty and care between the business and its employees.

All good employers will praise their employees and offer motivation pep talks, but sometimes they need a bit more than that. It’s one thing to tell your workers you value them, but much better to actually show it.

Employee benefits are a great way for businesses to show they value their staff, and are willing to demonstrate this in a tangible way. In return, workers will feel valued and looked after and will be more likely to go the extra mile for their bosses. 

Help Increase Staff Retention

Staff retention is an ongoing battle for all businesses. There is nothing more frustrating than building a great team, training and investing in them, and then they leave for another company. 

Approximately 80% of employees are looking for other job opportunities. So it is not something that any business should be complacent about.

Offering employee benefits is one way to help increase staff retention. An employee looking at an identical job and salary elsewhere will then judge the employer by the benefits they offer. 

An engaged employee will feel more content and happier in their current role, and less likely to look for work in a competing business. If an employee feels undervalued and not appreciated, they will start looking for another job.

Promote Loyalty 

Staff loyalty is not just about staff retention. Part of the importance of employee benefits is that it helps create a loyal team that will stand up for your brand.

A disgruntled employee who feels underappreciated could be bad-mouthing your business in public. This is not good for your brand and could end up damaging your reputation.

However, a happy employee will help promote your brand on their own accord. If they are content with their employee benefits they will sing the praises of your company. 

Improve Productivity

Providing benefits is not only good for your workers, but it benefits your business too. 

In fact, organizations with engaged employees outperform those with low employee engagement by 202%. This is because engaged employees will go the extra mile for your business. They will stay a bit later to complete a task, take less time off sick, and strive to do their best for their boss. 

Health-based employee benefits such as health insurance will also boost productivity. A healthier, calmer team will be stronger and mentally more alert. They will also take much less time off for illness. 

All of this adds up to a more productive workforce, which will increase your leads and your revenue. 

Importance of Employee Benefits for Recruitment

Offering employee benefits is a great tool for recruitment as well as employee retainment. 

Recruitment is not a buyer’s market anymore. Candidates are becoming selective about which businesses they apply to. This is partly because unemployment has fallen and so there are more candidates applying for fewer positions. 

So, in order to recruit the best candidates, businesses have to market themselves as good employers. One of the ways they can do this is to offer good employee benefits. 

A business can impress talented candidates by offering health care insurance as an employee benefit. This will send your brand up in their estimations and make them more likely to apply. 

Employee benefits are also great for your company’s reputation. Buyers are more aware of business ethics now and use that information when they make buying decisions. So, when word gets out that you value your employees and treat them well, this will translate to your brand. 

Health Insurance Plans that Work for You

So those are some of the reasons that highlight the importance of employee benefits. They help recruit and retain staff, and are great for your brand reputation.

A workforce that is happy with its employee benefits will also be more engaged and productive. So everyone’s a winner. 

If you would like to know more about health insurance for small business click here

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